Vishay Precision Group Inc (VPG) 2022 Q4 法說會逐字稿

Hello, everyone, and welcome to the VPG's Fourth Quarter Fiscal 2022 Earnings Call. My name is Bruno, and I will be operating your call today. (Operator Instructions) I will now hand over to your host, Mr. Steve Cantor, Senior Director of Investor Relations. Mr. Cantor, please go ahead.

大家好，歡迎來到 VPG 2022 財年第四季度財報電話會議。我叫布魯諾，今天我將接聽您的電話。 （操作員說明）我現在將交給您的主持人，投資者關係高級總監史蒂夫坎托先生。坎托先生，請繼續。

Thank you, Bruno, and good morning, everyone. Welcome to VPG's 2022 Fourth Quarter Earnings Conference Call. Our Q4 and full year press release and accompanying slides have been posted on our website, vpgsensors.com. An audio recording of today's call will be available on the Internet for a limited time and can also be accessed on the VPG website.

謝謝你，布魯諾，大家早上好。歡迎來到 VPG 的 2022 年第四季度收益電話會議。我們的第四季度和全年新聞稿以及隨附的幻燈片已發佈在我們的網站 vpgsensors.com 上。今天通話的錄音將限時在互聯網上提供，也可以在 VPG 網站上訪問。

Today's remarks are governed by the safe harbor provisions of the 1995 Private Securities Litigation Reform Act. Our actual results may vary from forward-looking statements. For a discussion of the risks associated with VPG's operations, we encourage you to refer to our SEC filings especially the Form 10-K for the year ended December 31, 2021, and our other recent SEC filings.

今天的言論受 1995 年私人證券訴訟改革法案的安全港條款約束。我們的實際結果可能與前瞻性陳述有所不同。有關與 VPG 運營相關的風險的討論，我們鼓勵您參考我們向美國證券交易委員會提交的文件，尤其是截至 2021 年 12 月 31 日止年度的 10-K 表格，以及我們最近向美國證券交易委員會提交的其他文件。

On the call today are Ziv Shoshani, CEO and President; and Bill Clancy, CFO. I'll now turn the call to Ziv for some prepared remarks. Please refer to Slide 3 of the presentation. Ziv?

今天接聽電話的是首席執行官兼總裁 Ziv Shoshani；和首席財務官比爾·克蘭西 (Bill Clancy)。我現在將電話轉給 Ziv 以徵求一些準備好的意見。請參閱演示文稿的幻燈片 3。齊夫？

Thank you, Steve. I am pleased to report we delivered another very successful quarter and year for VPG. Beginning with our 2022 performance, 2022 was the best year in VPG's history in terms of growth and profitability. We grew our revenue by 14% excluding the unfavorable impact of foreign exchange, we grew revenue by 20.1%.

謝謝你，史蒂夫。我很高興地報告，我們為 VPG 交付了又一個非常成功的季度和年度。從我們 2022 年的業績開始，2022 年是 VPG 歷史上增長和盈利能力最好的一年。排除外彙的不利影響，我們的收入增長了 14%，我們的收入增長了 20.1%。

We increased our adjusted diluted net EPS by 40.1% to $2.62. We generated $62 million in adjusted EBITDA and improved our adjusted EBITDA margin to 17.1% from 15.7% recorded in prior year. We launched a new operating strategy and structure built on operational diversification which we believe will leverage our strong corporate competencies and accelerate our long-term growth potential.

我們將調整後的稀釋淨每股收益提高了 40.1% 至 2.62 美元。我們產生了 6200 萬美元的調整後 EBITDA，並將調整後的 EBITDA 利潤率從去年的 15.7% 提高到 17.1%。我們推出了基於運營多元化的新運營戰略和結構，我們相信這將利用我們強大的企業競爭力並加速我們的長期增長潛力。

We believe these strong results demonstrate the increasing importance of our precision sensing and measurement solutions, the power of our business model and our growth strategy. It is important to note that our 2022 performance is a continuation of the results we have delivered over the past several years, and puts us closer to achieving our 3- to 5-year financial targets.

我們相信，這些強勁的業績表明我們的精密傳感和測量解決方案的重要性日益增加，我們的商業模式和增長戰略也很強大。值得注意的是，我們 2022 年的業績是過去幾年取得的成果的延續，使我們更接近實現 3 至 5 年的財務目標。

Moving to Slide 4. Turning to the fourth quarter of 2022. We reported sales of $96.2 million, which was 6.9% higher than both a year ago and the third quarter 2022. Our sales performance continued to be negatively impacted by foreign exchange, particularly in our Sensors and Weighing Solutions segments. FX impacted our total fourth quarter revenues by $5.3 million compared to a year ago and by $800,000 when compared to the third quarter. Thus, excluding FX impact, revenue grew 13.6% from prior year and 7.9% sequentially.

轉到幻燈片 4。轉到 2022 年第四季度。我們報告銷售額為 9620 萬美元，比一年前和 2022 年第三季度增長 6.9%。我們的銷售業績繼續受到外彙的負面影響，特別是在我們的傳感器和稱重解決方案部門。與去年同期相比，外匯影響了我們第四季度的總收入 530 萬美元，與第三季度相比影響了 800,000 美元。因此，排除外匯影響，收入較上年增長 13.6%，環比增長 7.9%。

We realized record adjusted diluted net EPS of $0.76 in the fourth quarter. We successfully passed on price increases to mitigate higher material costs, through 2022 compared to a year ago, we realized $8.8 million from price increases, which is slightly above the high end of our target for incremental revenue in 2022 from our selling price increases. This essentially offset higher labor and material costs.

我們在第四季度實現了創紀錄的調整後攤薄每股收益 0.76 美元。我們成功地通過價格上漲來緩解更高的材料成本，到 2022 年，與一年前相比，我們通過價格上漲實現了 880 萬美元，這略高於我們 2022 年銷售價格上漲帶來的增量收入目標的上限。這基本上抵消了較高的勞動力和材料成本。

We generated adjusted EBITDA of $17.5 million and achieved an adjusted EBITDA margin of 18.2%. After 7 consecutive quarters of book-to-bill over 1.0 and the record fourth quarter revenues, our book-to-bill in the fourth quarter of 0.76 reflected softer fourth quarter orders. The Q4 orders primarily reflected the following factors: first, cyclicality, lower orders in the Test and Measurement, consumer and steel markets. Second, the timing of project-driven and annual and semiannual orders; and third, a comparison of the third quarter, which included a large onetime orders in the precision ag. While near-term visibility is limited, we expect orders to increase sequentially in Q1 of '23, and to improve through the year. We are confident about the prospects for our strategic initiatives to address emerging and broadening opportunities for our precision sensing and measurement technologies.

我們產生了 1750 萬美元的調整後 EBITDA，並實現了 18.2% 的調整後 EBITDA 利潤率。在連續 7 個季度超過 1.0 的訂單出貨比和創紀錄的第四季度收入之後，我們第四季度 0.76 的訂單出貨比反映了第四季度訂單的疲軟。四季度訂單主要反映了以下因素：一是周期性，測試測量、消費品和鋼鐵市場訂單減少。第二，項目驅動和年度、半年度訂單的時間安排；第三，第三季度的比較，其中包括精密公司的大量一次性訂單。雖然短期能見度有限，但我們預計訂單將在 23 年第一季度連續增加，並在全年有所改善。我們對我們的戰略計劃的前景充滿信心，以應對我們的精密傳感和測量技術正在出現的和不斷擴大的機會。

Looking at our business segment performance. Moving to Slide 5. Beginning with our Sensor segment. Fourth quarter revenue of $36.3 million, declined 4.1% sequentially and grew 6.3% from a year ago. Foreign currency continued to significantly impact Sensors revenue and resulted in a negative impact of $300,000 and $2.4 million to the sensors top line compared to the third quarter and a year ago, respectively.

看看我們的業務部門的表現。轉到幻燈片 5。從我們的傳感器部分開始。第四季度收入為 3630 萬美元，環比下降 4.1%，同比增長 6.3%。與第三季度和一年前相比，外幣繼續對傳感器收入產生重大影響，並分別對傳感器收入造成 300,000 美元和 240 萬美元的負面影響。

Excluding FX impact, Sensors revenue was down 3.5% sequentially but grew 14.3% from a year ago. Sales of advanced sensors softened modestly in the fourth quarter, as for the full year, Advanced Sensors revenue grew 41% to approximately $50 million. With what we view as the best performing product of its kind in the market today, we are well positioned on our customers' next-generation platform as we continue to be excited about the long-term potential for advanced sensors.

排除外匯影響，傳感器收入環比下降 3.5%，但比一年前增長 14.3%。高級傳感器的銷售額在第四季度略有放緩，全年高級傳感器收入增長 41% 至約 5000 萬美元。憑藉我們認為當今市場同類產品中性能最佳的產品，我們在客戶的下一代平台上處於有利地位，因為我們繼續對先進傳感器的長期潛力感到興奮。

We are seeing more opportunities in additional markets, including electric vehicles. Sales of precision resistors were modestly lower from Q3, primarily due to fewer working days due to local holidays. We continued our strategic initiatives to secure design wins in new emerging markets in data centers and fiber optics equipment, as well as industrial automation systems.

我們在其他市場看到了更多機會，包括電動汽車。精密電阻器的銷售額較第三季度略有下降，這主要是由於當地假期導致工作日減少。我們繼續我們的戰略舉措，以確保在數據中心和光纖設備以及工業自動化系統的新興市場中贏得設計。

For data centers, our products can provide enhanced levels of precision and stability which contributes to a higher performance of those networks. In terms of operating results, for sensors, gross margin of 37.6% declined sequentially from 40.5%, which was primarily a result of lower volume and temporary manufacturing inefficiencies.

對於數據中心，我們的產品可以提供更高水平的精度和穩定性，從而有助於提高這些網絡的性能。就經營業績而言，傳感器的毛利率從 40.5% 連續下降至 37.6%，這主要是由於銷量下降和暫時的製造效率低下。

We expect Sensors gross margin to improve in the first quarter of 2023. The Sensor segment had a book-to-bill of 0.76, reflecting slower cyclical orders for precision resistors in the Test and Measurement market, particularly for semiconductor test equipment and in consumer for advanced sensors. Given our current customer discussions, we expect orders to improve in the first half of 2023.

我們預計傳感器毛利率將在 2023 年第一季度有所改善。傳感器部門的訂單出貨率為 0.76，反映出測試和測量市場精密電阻器的周期性訂單放緩，尤其是半導體測試設備和消費品先進的傳感器。鑑於我們目前的客戶討論，我們預計訂單將在 2023 年上半年有所改善。

Moving to Slide 6. Turning to our Weighing Solutions segment. Fourth quarter sales of $33.1 million increased 5.4% from $31.4 million from the third quarter of 2022 and 3.2% from $32.1 million in the prior year period. Excluding the negative impact of FX, Weighing Solutions revenue grew 6.1% sequentially and 10.5% year-over-year. We were pleased with the performance of our Force Sensors OEM initiatives as OEM revenue grew approximately 34% on a sequential basis and 52% on a year-over-year basis.

轉到幻燈片 6。轉到我們的稱重解決方案部分。第四季度銷售額為 3310 萬美元，比 2022 年第三季度的 3140 萬美元增長 5.4%，比去年同期的 3210 萬美元增長 3.2%。排除外彙的負面影響，稱重解決方案收入環比增長 6.1%，同比增長 10.5%。我們對力傳感器 OEM 計劃的表現感到滿意，因為 OEM 收入環比增長約 34%，同比增長 52%。

In the fourth quarter, sales reflected the shipments of large order for precision agriculture applications, which was booked in the third quarter. This was partially offset by softer sales in the Transportation market for our overload monitoring products and our e TruckWeigh and VanWeigh initiatives. Weighing Solutions, adjusted gross margin of 33.4% in the fourth quarter was flat compared to 33.3% in the third quarter as higher volume was offset by unfavorable foreign currency exchange rates. The Weighing Solutions segment had a book-to-bill ratio of 0.82 in the fourth quarter of 2022, reflecting the timing of OEM projects and the streamlining of the supply chain in precision agriculture and in Europe and Asia for industrial weighing applications.

第四季度，銷售額反映了第三季度預訂的精準農業應用大訂單的出貨量。這部分被我們的超載監控產品以及我們的 e TruckWeigh 和 VanWeigh 計劃在運輸市場的銷售疲軟所抵消。稱重解決方案，第四季度調整後的毛利率為 33.4%，與第三季度的 33.3% 持平，這是因為較高的銷量被不利的外幣匯率所抵消。稱重解決方案部門在 2022 年第四季度的訂單出貨比為 0.82，這反映了 OEM 項目的時間安排以及精準農業以及歐洲和亞洲工業稱重應用供應鏈的精簡。

Moving to Slide 7. Turning to our Measurement Systems segment. Revenue in the fourth quarter of $26.8 million increased 29.2% sequentially and 12.8% from a year ago -- from prior year, reflecting growth across the Measurement Systems portfolio, excluding the negative impact of FX, Measurement Systems revenue grew 31.3% sequentially and 16.9% year-over-year. Adjusted gross margin in the fourth quarter for Measurement Systems was 56.8%, which compared to 56.7% in the third quarter of 2022, while slightly higher on a sequential basis, the fourth quarter adjusted gross margin for Measurement Systems was impacted negatively by unfavorable product mix and foreign exchange rates. .

轉到幻燈片 7。轉到我們的測量系統部分。第四季度收入為 2680 萬美元，環比增長 29.2%，同比增長 12.8%，反映了 Measurement Systems 產品組合的增長，不包括外彙的負面影響，Measurement Systems 收入環比增長 31.3%，同比增長 16.9%一年又一年。 Measurement Systems 第四季度調整後毛利率為 56.8%，而 2022 年第三季度為 56.7%，雖然環比略高，但 Measurement Systems 第四季度調整後毛利率受到不利產品組合的負面影響和外匯匯率。 .

Book-to-bill for Measurement Systems was 0.7, reflecting cyclically slower orders in steel and the timing of customer projects for vehicle safety testing in Transportation and in AMS. Customer engagement and quote activity remains robust, which is a positive indicator for the second half of 2023. On our Measurement Systems businesses are strong market leaders in their respective niches. Demand in these businesses is largely project-driven as these systems generally have longer selling and delivery cycles and higher ASPs. Within these niches, there are a number of attractive avenues for growth.

Measurement Systems 的訂單出貨比為 0.7，反映了鋼鐵訂單的周期性放緩以及運輸和 AMS 中客戶車輛安全測試項目的時間安排。客戶參與度和報價活動依然強勁，這是 2023 年下半年的一個積極指標。我們的測量系統業務在各自的利基市場中都是強大的市場領導者。這些業務的需求主要由項目驅動，因為這些系統通常具有更長的銷售和交付週期以及更高的平均售價。在這些利基市場中，有許多有吸引力的增長途徑。

Moving to Slide 8. Our capital allocation strategy, which is supported by our strong cash from operations and our solid balance sheet is focused on creating shareholders' value. On 3 priorities are: one, internal investment to support our organic growth; two, strategic M&A, and three, stock repurchase. In terms of internal investments, 2022 was another important year for us as we continue to streamline our manufacturing capability while expanding our ability to address new higher volume opportunities that will further accelerate our growth.

轉到幻燈片 8。我們的資本配置策略由我們強大的運營現金和穩健的資產負債表支持，專注於創造股東價值。三個優先事項是：一是內部投資以支持我們的有機增長；二是戰略併購，三是股票回購。在內部投資方面，2022 年對我們來說又是重要的一年，因為我們將繼續精簡我們的製造能力，同時擴大我們應對新的更高產量機會的能力，這將進一步加速我們的增長。

I've mentioned on previous earnings calls, our infrastructure projects for precision resistors and load cells, which follow the significant investments we have already made over the past several years. As we complete our current projects in 2023, we expect capital spending to return to a more historical levels of approximately 4% to 4.5% of revenue. Regarding M&A, we continue to look for attractive high-quality businesses that meet our stringent requirements for strategic fit, financial returns and value creation. .

我在之前的財報電話會議上提到過我們的精密電阻器和稱重傳感器的基礎設施項目，這些項目是在我們過去幾年已經進行的重大投資之後進行的。隨著我們在 2023 年完成當前項目，我們預計資本支出將恢復到歷史水平，約為收入的 4% 至 4.5%。在併購方面，我們繼續尋找有吸引力的高質量企業，以滿足我們對戰略契合、財務回報和價值創造的嚴格要求。 .

We are currently seeing more activity and more opportunities on the M&A front. And finally, regarding stock repurchase program we announced in August through the end of 2022, we repurchased approximately 2.7 million of our stock or about 85,213 shares. .

我們目前在併購方面看到了更多的活動和更多的機會。最後，關於我們在 8 月宣佈到 2022 年底的股票回購計劃，我們回購了約 270 萬股股票或約 85,213 股。 .

Before turning the call to Bill for additional financial detail, I want to thank our employees and our customers around the world for making 2022 a successful year for VPG. The passion, dedication and focus of VPG teams on our customers are the engine of our success.

在致電 Bill 詢問更多財務細節之前，我要感謝我們的員工和全球客戶讓 2022 年成為 VPG 成功的一年。 VPG 團隊對客戶的熱情、奉獻和專注是我們成功的動力。

I will now turn it over to Bill Clancy for more details.

我現在將其轉交給 Bill Clancy 以獲取更多詳細信息。

Thank you, Ziv. Referring to Slide 9 and the reconciliation tables of the slide deck. Our fourth quarter 2022 revenues grew 6.9% compared to the $90.1 million in the fourth quarter a year ago, and were 6.9% above the third quarter of 2022. Foreign exchange for the fourth quarter of 2022 had a negative impact on revenues of $5.3 million compared to a year ago, and a negative impact of $800,000 as compared to the third quarter of 2022. The gross margin in the fourth quarter was 41.2% compared to 38.7% in the third quarter.

謝謝你，齊夫。請參閱幻燈片 9 和幻燈片平台的調節表。與去年第四季度的 9010 萬美元相比，我們 2022 年第四季度的收入增長了 6.9%，比 2022 年第三季度增長了 6.9%。與去年同期相比，2022 年第四季度的外匯對收入產生了 530 萬美元的負面影響與一年前相比，與 2022 年第三季度相比產生了 800,000 美元的負面影響。第四季度的毛利率為 41.2%，而第三季度為 38.7%。

On an adjusted basis, excluding $200,000 of acquisition purchase accounting adjustments, our fourth quarter gross margin of 41.5% compared to 41.7% in the third quarter of 2022. Our operating margin was 13.6% for the fourth quarter of 2022. Our fourth quarter adjusted operating margin was 14%, excluding $200,000 of restructuring costs and the adjustment I just mentioned above. Selling, general and administrative expenses for the fourth quarter of 2022 were $26.5 million or 27.5% of revenues compared to $25.3 million or 28.1% of revenues for the third quarter of 2022.

在調整後的基礎上，不包括 200,000 美元的收購會計調整，我們第四季度的毛利率為 41.5%，而 2022 年第三季度為 41.7%。我們 2022 年第四季度的營業利潤率為 13.6%。我們第四季度調整後的營業利潤率為 14%，不包括 200,000 美元的重組成本和我剛才提到的調整。 2022 年第四季度的銷售、一般和管理費用為 2650 萬美元，佔收入的 27.5%，而 2022 年第三季度為 2530 萬美元，佔收入的 28.1%。

The sequential increase in SG&A of $1.2 million mainly relates to $600,000 for commissions, $300,000 for travel and $300,000 for other expenses. The adjusted net earnings for the fourth quarter of 2022 were $10.4 million or $0.76 per diluted share compared to $9.5 million or $0.69 per diluted share in the third quarter of 2022. Adjusted EBITDA was $17.5 million or 18.2% of revenue and grew 23.3% compared to $14.2 million or 15.7% of revenue a year ago. Our purchase CapEx in the fourth quarter was $6.8 million, the majority of which reflects purchases and related infrastructure for the Sensors reporting segment.

SG&A 環比增加 120 萬美元，主要與佣金 60 萬美元、差旅費 30 萬美元和其他費用 30 萬美元有關。 2022 年第四季度調整後淨收益為 1040 萬美元或攤薄後每股收益 0.76 美元，而 2022 年第三季度為 950 萬美元或攤薄後每股收益 0.69 美元。調整後 EBITDA 為 1750 萬美元或占收入的 18.2%，與去年同期相比增長 23.3% 1420 萬美元，佔一年前收入的 15.7%。我們第四季度的採購資本支出為 680 萬美元，其中大部分反映了傳感器報告部門的採購和相關基礎設施。

Total purchase CapEx for 2022 was $20 million or 5.5% of revenues. For 2023, we are budgeting $18 million to $20 million, which includes approximately $7 million in carryover spending from 2022. We generated adjusted free cash flow of $6.8 million for the fourth quarter of 2022 as compared to $5 million for the third quarter of 2022. We define adjusted free cash flow with cash from operating activities, less capital expenditures plus sales fixed assets. Our GAAP tax rate in the fourth quarter was 17.6%. We are assuming an operational tax rate in the range of 20% to 23% for the full year of 2023. .

2022 年的總採購資本支出為 2000 萬美元，佔收入的 5.5%。對於 2023 年，我們的預算為 1800 萬至 2000 萬美元，其中包括約 700 萬美元的 2022 年結轉支出。我們在 2022 年第四季度產生了 680 萬美元的調整後自由現金流，而 2022 年第三季度為 500 萬美元。我們用經營活動產生的現金減去資本支出加上銷售固定資產來定義調整後的自由現金流量。我們第四季度的 GAAP 稅率為 17.6%。我們假設 2023 年全年的營業稅率在 20% 至 23% 之間。

Moving to Slide 10. We ended the fourth quarter with $88.6 million of cash and cash equivalents and total outstanding long-term debt of $60.8 million. We believe that we have a strong balance sheet and ample liquidity to support our business requirements and to fund additional M&A opportunities.

轉到幻燈片 10。我們在第四季度結束時擁有 8860 萬美元的現金和現金等價物，未償長期債務總額為 6080 萬美元。我們相信我們擁有強大的資產負債表和充足的流動性來支持我們的業務需求並為更多的併購機會提供資金。

Regarding the outlook. For the first fiscal quarter of 2023 at constant fourth fiscal 2022 exchange rates, we expect net revenue to be in the range of $85 million to $95 million. In summary, our solid fourth quarter results capped a record year for VPG. We are excited about penetrating emerging market segments with our high-value precision products for our customers. .

關於前景。按 2022 年第四財年不變匯率計算，2023 年第一財季，我們預計淨收入將在 8500 萬美元至 9500 萬美元之間。總而言之，我們穩健的第四季度業績為 VPG 創下了創紀錄的一年。我們很高興能夠為我們的客戶提供高價值的精密產品來滲透新興市場領域。 .

With that, let's open the lines for questioning. Thank you.

有了這個，讓我們打開提問線。謝謝。

(Operator Instructions)

（操作員說明）

Our first question is from John Franzreb from Sidoti.

我們的第一個問題來自 Sidoti 的 John Franzreb。

Great quarter. Listen, I actually want to drill down into the book-to-bill ratio. It's been quite some time since we've seen such a low reported number. And it seems like there's an awful lot of factors that are involved here. Ziv, I wonder if you can kind of talk about which ones you think are the most temporary in nature, and which ones maybe are you eyeballing with a little bit more concern on a go-forward basis?

偉大的季度。聽著，我實際上想深入了解訂單出貨比。自從我們看到如此低的報告數字以來已經有一段時間了。似乎這裡涉及的因素太多了。 Ziv，我想知道你是否可以談談你認為哪些是自然界中最短暫的，哪些是你在未來的基礎上更加關注的？

Sure. Absolutely. So first of all, the book-to-bill represents record revenues, which somehow increase the magnitude of the book-to-bill. When we are looking at the order changes, it's around 3 segments -- 3 end markets, 3 segments. It's around Test and Measurement for semiconductor equipment, mainly at our EMS and to an extent also a distributor for process automation. For precision resistors, this represents a certain easing of the supply chain, and based on the discussions we had with customers, we are already expecting to see an improvement in Q1 of this year.

當然。絕對地。因此，首先，訂單出貨比代表了創紀錄的收入，這在某種程度上增加了訂單出貨比的規模。當我們查看訂單變化時，它大約有 3 個部分——3 個終端市場，3 個部分。它圍繞半導體設備的測試和測量，主要是我們的 EMS，在某種程度上也是過程自動化的分銷商。對於精密電阻來說，這代表著供應鏈的一定程度的放鬆，根據我們與客戶的討論，我們已經預計今年第一季度會有改善。

The second piece is regarding consumer electronics, which has affected micro measurement given the supply chain and some of the manufacturing constraints on our customer side. We are now based on the latest projection we have received from them, to the -- we are expecting in the second quarter to see already orders coming back to a normalized level. The other piece is the Transportation market. The Transportation market is -- to an extent, has been affected by the availability of microprocessors mainly for our onboard Weighing business in the U.K. And the expectation is as well in the coming quarters, we are expecting to see an improvement or availability of microchips. Therefore, the demand is expected to return.

第二部分是關於消費電子產品，考慮到供應鍊和我們客戶方面的一些製造限制，它影響了微觀測量。我們現在基於我們從他們那裡收到的最新預測，我們預計在第二季度看到訂單已經恢復到正常水平。另一塊是運輸市場。運輸市場在某種程度上受到了微處理器可用性的影響，主要用於我們在英國的車載稱重業務。預計在接下來的幾個季度中，我們預計會看到微芯片的改進或可用性。因此，需求有望回歸。

So all in all, it's around 3 specific end markets. And we are already -- as we indicated earlier, we are already expecting to see an improved order rate already in Q1, which is expected to improve further along 2023.

所以總而言之，它圍繞 3 個特定的終端市場。我們已經——正如我們之前所指出的，我們已經預計第一季度的訂單率會有所提高，預計到 2023 年會進一步提高。

And given your guidance, putting revenue of $85 million to $95 million, it certainly suggests that you have ample bookings in the backlog to kind of endure this temporary pause in the order book. Is that fair? And does that booking profile extend into the second quarter? Or does the orders have to come back before it becomes more problematic for the second quarter?

根據您的指導，收入為 8500 萬美元至 9500 萬美元，這肯定表明您在積壓訂單中有足夠的預訂來忍受訂單簿中的這種暫時停頓。這公平嗎？該預訂資料是否會延續到第二季度？還是必須在第二季度問題變得更加嚴重之前恢復訂單？

So historically, the backlog, which represents our customers desire to deliver product at a given time, slightly represents over 50% of the -- slightly over 50% of backlog, which is expected to be delivered within the following quarter. So when we speak about the guidance, we are looking at our current backlog, given customer expectations to get the products and what we expect to be booked and built within a given quarter. That's the way we build our, let's say, forecast -- sales forecast model. We don't expect Q1 to be impacted by the so-called lower order intake in Q4, Q1 deliveries.

因此，從歷史上看，代表我們的客戶希望在給定時間交付產品的積壓訂單略佔積壓訂單的 50% 以上，預計將在下一季度交付。因此，當我們談論指導時，我們正在考慮我們當前的積壓，考慮到客戶對獲得產品的期望以及我們期望在給定季度內預訂和建造的產品。這就是我們建立我們的方式，比方說，預測——銷售預測模型。我們預計第一季度不會受到第四季度、第一季度交付的所謂較低訂單量的影響。

And I guess -- perfect. And one last question, and then I'll get back into queue, is regarding the revenue mix. The revenue mix was very beneficial in Q4. How would you expect the revenue mix to play out in Q1 versus Q4?

我想——完美。最後一個問題，然後我會回到隊列中，是關於收入組合的。第四季度的收入組合非常有利。您預計第一季度和第四季度的收入組合會如何？

The revenue mix was favorable in a way, in Q1, given the fact that we have -- that there was higher mix for Measurement Systems at a higher gross margin in respect to Weighing Solutions at a lower gross margin. As you know, we don't give any guidance regarding the gross margin. But all in all, we should expect similar level -- I would say, similar level of gross margin in Q1, given the order mix and some changes in the business -- the gross margin...

考慮到我們的事實，第一季度的收入組合在某種程度上是有利的 - 測量系統的組合更高，毛利率更高，而稱重解決方案的毛利率更低。如您所知，我們不提供有關毛利率的任何指導。但總而言之，考慮到訂單組合和業務的一些變化，我們應該期待類似的水平——我會說，第一季度的毛利率水平類似——毛利率……

So maybe Sensors, I think you indicated you expect a better Sensor gross margin sequentially, right? So that would be beneficial.

所以也許傳感器，我想你表示你期望傳感器毛利率依次提高，對嗎？所以這將是有益的。

That is correct. That is correct.

那是對的。那是對的。

Our next question is from Bill Dezellem from Tieton Capital.

我們的下一個問題來自 Tieton Capital 的 Bill Dezellem。

A couple of different questions. First of all, would you please talk to the ag and construction market despite the comments in the release, it sounds like there may be something interesting happening within that industry within the Weighing segment.

幾個不同的問題。首先，儘管新聞稿中有評論，請您與農業和建築市場談談，聽起來稱重領域的該行業可能正在發生一些有趣的事情。

Sure, absolutely. Regarding precision ag, we had a very, very large customer who placed a very large order in Q3 that has been delivered in Q4, they had to retrofit all their field equipment, and they had to do it pretty fast. This is why we have received a very large order, this business at this point in time is running in a very stable way.

當然，絕對。關於 precision ag，我們有一個非常非常大的客戶，他在第三季度下了一個非常大的訂單，已經在第四季度交付了，他們必須改造所有的現場設備，而且他們必須非常快地完成。這就是為什麼我們收到了一個非常大的訂單，這個時間點的業務運行非常穩定。

Regarding the construction business, we also received I would say, a midsized order from 1 of those larger equipment construction companies who are buying our load cells. And at this point in time, we -- I mean we don't see any changes at least given our visibility within the next quarter for large spikes, but the fact that they have placed a large order implied that they had a certain requirement to go and change or to modify x amount of equipment units in the field.

關於建築業務，我想說，我們還收到了來自其中一家大型設備建築公司的中型訂單，他們正在購買我們的稱重傳感器。在這個時間點，我們 - 我的意思是我們看不到任何變化，至少考慮到我們在下個季度對大峰值的可見性，但他們下了一個大訂單的事實意味著他們有一定的要求去改變或修改現場 x 數量的設備單元。

But this is a very stable business for us, i.e., the increase in the OEM business, which was quite impressive year-over-year of 52% and even quarter-over-quarter, implies that there is stability and strength on the OEM piece as we move forward in the year.

但這對我們來說是一項非常穩定的業務，即 OEM 業務的增長非常可觀，同比增長 52%，甚至環比增長，這意味著 OEM 業務具有穩定性和實力隨著我們在這一年中前進。

And is this a customer that you are winning market share from a competitor? Or -- and why that 50% strength at the OEM level? Because that sounds like that's different from the retrofit that you referenced?

這是您從競爭對手那裡贏得市場份額的客戶嗎？或者——為什麼 OEM 級別有 50% 的優勢？因為這聽起來與您提到的改造不同？

Sure. So this -- the type of OEM business, the OEM -- the Force Sensors OEM business is a very sticky business. In most cases, given the qualification cost they select 1 supplier. I mean this is not an exchangeable given the -- again, the nature of qualification and the custom spec, which is required for our products to fit the equipment.

當然。所以這個——OEM 業務的類型，OEM——力傳感器 OEM 業務是一個非常有粘性的業務。在大多數情況下，考慮到資格認證成本，他們會選擇 1 個供應商。我的意思是這不是可交換的——再一次，資格的性質和定制規格，這是我們的產品適合設備所必需的。

Therefore, once you have been designed in, you have been designed in for the product life cycle. And now it is based on our customer demand changes that will trigger the order intake. And the product life cycle of those equipment could be 10 to 15 years. But we -- once you have designed -- you have been designed, you are there as a sole supplier. That's the way they operate.

因此，一旦你被設計進來，你就被設計進了產品生命週期。現在是根據我們的客戶需求變化來觸發訂單接收。這些設備的產品生命週期可達 10 到 15 年。但是我們——一旦你設計好了——你就被設計好了，你就是那裡的唯一供應商。這就是他們的運作方式。

Great. And then relative to the acquisition pipeline, I think in your opening comments, you inferred that there are favorable developments with discussions taking place there. Would you talk broadly to what's changing and why the pipeline seems to be larger today? And to what degree do the questions about the global economic activity create an opportunity for you.

偉大的。然後相對於收購管道，我認為在你的開場評論中，你推斷那裡有有利的發展和討論。您能否廣泛談談正在發生的變化以及為什麼今天的管道似乎更大？有關全球經濟活動的問題在多大程度上為您創造了機會。

Sure. Of course. I believe that as once exchange rates went up even in a dramatic way, the -- we see many more opportunities for M&A. We see many more deals that are -- and many more companies that are putting companies on the shelf. Some of them are privately held companies, while others are being held by VCs or financial institutions.

當然。當然。我相信，一旦匯率大幅上漲，我們就會看到更多的併購機會。我們看到更多的交易——以及更多的公司將公司擱置。其中一些是私人控股公司，而另一些則由風險投資公司或金融機構持有。

I could have guessed that, to an extent, those companies were operating with a nice tailwind in the last couple of years, and they would like to take advantage of the, I would say, improved operational performance in order to optimize the selling price given the economic environment, which they may see and also the higher interest rate environment. Therefore, we do see many more opportunities, which we have not seen a couple of quarters ago.

我本可以猜到，在某種程度上，這些公司在過去幾年中順風順水，他們想利用運營績效的提高來優化銷售價格他們可能看到的經濟環境以及更高的利率環境。因此，我們確實看到了更多的機會，這是我們幾個季度前沒有看到的。

(Operator Instructions) Our next question is from Hendi Susanto from Gabelli Funds.

（操作員說明）我們的下一個問題來自 Gabelli Funds 的 Hendi Susanto。

Bill, may I ask questions, how should we think about gross margin in 2023, if you look at 2022 gross margin? How sustainable is gross margin at around 41%. It's higher than like recent historical levels.

比爾，我可以問一下，如果你看 2022 年的毛利率，我們應該如何看待 2023 年的毛利率？毛利率在 41% 左右的可持續性如何。它高於最近的歷史水平。

Yes, Andy, I think as Ziv mentioned on the call, especially even going in because we don't really give guidance on gross margins, but yet I think given the product mix, I think we mentioned that we would see similar levels in the first quarter of '23, and then obviously, as we go out the year, like I said, we don't give guidance, but we feel quite confident of the levels that we're achieving today and the possibilities with increased volume to increase.

是的，安迪，我認為正如 Ziv 在電話會議上提到的那樣，尤其是因為我們並沒有真正給出毛利率的指導，但我認為考慮到產品組合，我認為我們提到我們會看到類似的水平23 年第一季度，然後很明顯，就像我說的那樣，我們沒有給出指導，但我們對我們今天達到的水平以及增加銷量的可能性充滿信心.

And then Ziv may I ask about inventory levels. And then when orders return, like how quickly can they turn into like sales in general?

然後 Ziv 我可以問一下庫存水平嗎？然後當訂單返回時，它們一般能多快變成類似的銷售額？

Well, our current backlog is around 4.8 months of sales, which is above the historical trends of 3.5 months. At this point in time, we don't have any product, which is on allocation in any -- we don't have any product which is on allocation. Therefore, we could -- I would say, respond to any potential market uptick fairly fast.

那麼，我們目前的積壓訂單約為 4.8 個月的銷售額，高於 3.5 個月的歷史趨勢。目前，我們沒有任何產品在分配中——我們沒有任何產品在分配中。因此，我們可以——我會說，對任何潛在的市場上漲做出相當快的反應。

Since we have invested in equipment and in infrastructure, we are ready to take any potential volume upside. Naturally, we will have to hire more people, but I believe that this would be -- we would be able to do fairly quickly. So once additional volume would come, we would be able to turn it into revenues, I would say, within a quarter or two.

由於我們在設備和基礎設施方面進行了投資，因此我們已準備好接受任何潛在的上漲空間。自然地，我們將不得不僱用更多的人，但我相信這將是——我們將能夠相當快地完成。因此，一旦出現額外的銷量，我們就可以在一兩個季度內將其轉化為收入。

Okay. Yes. And Ziv, I think it is great to see Advanced Sensors like grew to $50 million in 2022. What can we expect in Advance Sensors in 2023? Are there like new advanced sensors applications that you are pursuing? And in terms of your manufacturing capacity of advanced sensors, should we continue to see the capacity to ramp up meaningfully higher in 2023?

好的。是的。而 Ziv，我認為很高興看到像 Advanced Sensors 這樣的公司在 2022 年增長到 5000 萬美元。2023 年我們對 Advance Sensors 有何期待？您是否正在追求新的高級傳感器應用？就你們先進傳感器的製造能力而言，我們是否應該繼續看到產能在 2023 年顯著提高？

So Advanced Sensors today, we do have equipment capacity to support any potential volume upside which may turn into -- which may come in 2023. In addition to that, we are still servicing our current portfolio, including the -- some very large customers, and we diligently continue our design-in wins at existing customers and with new customers.

因此，今天的 Advanced Sensors，我們確實有設備能力來支持任何潛在的銷量增長，這可能會在 2023 年實現。除此之外，我們仍在為我們當前的產品組合提供服務，包括 - 一些非常大的客戶，我們努力繼續在現有客戶和新客戶中贏得設計。

I did mention on the call, and this is very -- it's fairly on the early stages, that we are even -- that we have reached out and engaged customers -- large customers beyond our consumer electronics, which are in electric vehicles, the design cycle of -- the nature of the product is that the design cycle is around 12 to 24 months before we run on a full production run rate.

我確實在電話中提到過，這非常 - 它處於早期階段，我們甚至 - 我們已經接觸並吸引了客戶 - 除了我們的消費電子產品之外的大客戶，這些客戶在電動汽車中，設計週期——產品的本質是設計週期大約是 12 到 24 個月，然後我們才能以完整的生產運行率運行。

So while we continue to manage the capacity, the equipment and improving the process, our team members continuously are looking at new opportunities for designing wins in order to assure the growth of Advanced Sensors in the coming quarters and in the coming years.

因此，在我們繼續管理產能、設備和改進流程的同時，我們的團隊成員不斷尋找新的設計機會，以確保 Advanced Sensors 在未來幾個季度和未來幾年的增長。

And then Ziv, if you are able to share, would you be able to share where can be the footprint of advanced sensors in EVs .

然後 Ziv，如果你能分享，你能分享電動汽車中先進傳感器的足跡在哪裡嗎？

Since those are very early leads and discussions, I would be happy to share it once we would have more advanced steps with our customers. But at this point, it's still in the early stages.

由於這些是非常早期的線索和討論，一旦我們與客戶有更高級的步驟，我很樂意分享它。但在這一點上，它仍處於早期階段。

Our next question is from John Franzreb from Sidoti.

我們的下一個問題來自 Sidoti 的 John Franzreb。

Fortunately, a lot of my follow-ups have been addressed, but I do want to ask a little bit about the labor inefficiency that you cited in the Sensors segment. Ziv, what was that? And has that been fully rectified?

幸運的是，我的很多後續問題都得到了解決，但我確實想問一下您在傳感器部分提到的勞動力效率低下的問題。 Ziv，那是什麼？是否已經完全糾正？

Yes. The labor inefficiencies that we have incurred in Q4 is mainly due to the fact that we had to adjust our headcount to the volume drop mainly for micro measurement. This is a temporary effect that we don't expect to be repeated this in Q1 of 2023, but we had to make very quick adjustments. And it does include also some severance. So it's -- you can think of that mostly as a onetime effect.

是的。我們在第四季度發生的勞動力效率低下主要是由於我們不得不調整我們的員工人數以適應主要用於微觀測量的數量下降。這是暫時的影響，我們預計不會在 2023 年第一季度重演，但我們必須非常迅速地做出調整。它確實也包括一些遣散費。所以它 - 你可以將其視為一次性效果。

Okay. Fair enough. And regarding price increases, I think you realized just under $9 million in 2022. I'm just curious about the timing of you instituting those price increases. Will there be more benefit coming in 2023 based on the timing? Or would there be necessary to be another round of price increases in 2023 as you continue to battle the inflationary curve.

好的。很公平。關於提價，我認為您在 2022 年實現了不到 900 萬美元。我只是想知道您提價的時機。根據時間安排，2023 年是否會帶來更多好處？或者，隨著您繼續與通脹曲線作鬥爭，是否有必要在 2023 年進行另一輪價格上漲。

Sure. The $9 million are the price increases that the company has applied between 2021 to 2022. As we move into 2023, we do see a continuation of material cost increase, not only for microprocessors, but also some other parts due to supply chain and higher inflation costs. This is why the company has initiated another round of price increases from 2022, which should take into effect in 2023 in order to mitigate the material prices that the company is expected to see in 2023, which are naturally beyond the $9 million that has been applied before.

當然。這 900 萬美元是該公司在 2021 年至 2022 年期間申請的價格上漲。隨著我們進入 2023 年，我們確實看到材料成本持續上漲，不僅是微處理器，而且由於供應鍊和更高的通貨膨脹率，其他一些部分也是如此費用。這就是為什麼公司從 2022 年開始新一輪的價格上漲，應該在 2023 年生效，以減輕公司預計在 2023 年看到的材料價格，這自然超出了已經應用的 900 萬美元前。

We currently have no further questions. I will now hand back to our speaker for final comments, Mr. Steve Cantor. Please go ahead.

我們目前沒有進一步的問題。我現在將交還給我們的發言人 Steve Cantor 先生作最後的評論。請繼續。

Before concluding, I want to let investors know that we will be participating in the Sidoti Conference in March. And with that, thank you all for joining our call, and have a good day.

在結束之前，我想讓投資者知道我們將參加三月份的 Sidoti 會議。就此，感謝大家加入我們的電話會議，祝你有美好的一天。

Ladies and gentlemen, this concludes today's call. Thank you for joining. You may now disconnect your lines.

女士們，先生們，今天的電話會議到此結束。感謝您的加入。您現在可以斷開線路。